HALLIBURTON CO
For the period ended Mar 31, 2026. Filed Apr 24, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 24, 2026
HAL$31.84-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-24.
0000045012-25-000069
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive OverviewLiquidity and Capital ResourcesBusiness Environment and Results of OperationsResults of Operations in 2025 Compared to 2024Forward-Looking InformationCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-24.
0000045012-26-000039
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive OverviewLiquidity and Capital ResourcesBusiness Environment and Results of OperationsResults of Operations in 2026 Compared toForward-Looking InformationNew Accounting Standards Not Yet AdoptedThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 393 previous paragraphs and 305 current paragraphs.
110 unchanged; 95 reworded; 95 added; 178 removed; 10 previous and 5 current paragraphs rearranged.
Tables are not compared: 18 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (95)
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the sale to be completed in the second quarter of 2026.
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intervention, and artificial lift businesses. Develop our strategic collaboration with VoltaGrid around behind-the-
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During the first quarter of 2026, the ongoing geopolitical conflict has impacted activity in the Middle East resulting in
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an impactof $0.02 to $0.03 of diluted net income per share across both of our segments. Oilfield activity reflected continued
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customer focus on capital discipline and returns, with spending concentrated on projects and programs that improve near-term
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production and operating efficiency. Customer activity levels and spending plans remained sensitive to oil and natural gas price
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volatility and changes in global supply-and-demand fundamentals and were impacted by geopolitical developments, including
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regional conflicts, sanctions, and trade or regulatory actions.
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Trade tensions and tariffs continue to influence the global demand outlook, with varying impacts across end markets.
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Following a U.S. Supreme Court ruling that invalidated tariffs imposed in 2025 by the Trump Administration on goods from all
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countries, President Trump implemented a 150-day “global tariff” of 10% effective February 24, 2026, using presidential
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powers under Section 122 of the Trade Act of 1974, and indicated a desire to increase such “global tariff” to 15%. Although the
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Section 122 tariffs are due to expire in July, the Trump Administration has initiated processes that could result in new tariffs
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Oil prices increased in the first quarter of 2026 compared to the fourth quarter of 2025. The West Texas Intermediate
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(WTI) crude oil price averaged approximately $72 per barrel during the first quarter of 2026, compared to approximately $60
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per barrel during the fourth quarter of 2025, or a 20% increase. The Brent crude oil price averaged approximately$80 per barrel
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during the first quarter of 2026, compared to approximately $64 per barrel during the fourth quarter, or a 25% increase.
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Globally, we continue to be impacted by inflationary cost increases, primarily related to logistics, chemicals, and
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cement, we manage these pressures through global procurement strategies, technology modifications, and sourcing efficiencies.
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quarter of 2025. These results were primarily driven by lower stimulation activity in North America, and lower completion tool
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of 2025. These results were primarily driven by higher project management activity in Latin America and increased drilling-
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related services in Europe and the Western Hemisphere. Partially offsetting these increases were lower activity across multiple
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product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the
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Both divisional results were negatively impacted by the geopolitical conflict in the Middle East.
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Our North America revenue decreased 4% in thefirst quarter of 2026 as compared to thefirst quarter of 2025. This
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decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US Land, and lower
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stimulation activity and decreased fluid services in the Gulf of America. Partially offsetting these decreases were increased
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drilling-related services in US Land and higher completion tool sales in the region.
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Internationally, revenue increased 3% in thefirst quarter of 2026 as compared to thefirst quarter of 2025, largely
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driven by improved activity across multiple product service lines in Ecuador, the Caribbean, and Brazil, higher stimulation
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activity in Mexico and Argentina, increased drilling-related services and higher completion tool sales in Norway, and improved
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Middle East and decreased drilling-related services in Namibia.
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•Capital expenditures were$192 million.
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continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital
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We may, from time to time, redeem, repurchase, or otherwise acquire our outstanding debt through privately
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and our emissions intensity, participate in carbon capture, utilization, and storage, and geothermal projects globally,
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Oil prices declined further in the third quarter of 2025 compared to the second quarter of 2025, as ongoing supply
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additions from OPEC+ and non-OPEC producers weighed on the markets. While geopolitical unrest in the Middle East and the
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Russia-Ukraine conflict remain persistent sources of volatility, the more pronounced influence this quarter came from weaker
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global economic activity and cautious consumer spending, which tempered expectation for near-term demand.
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In the United States, the active rig count declined modestly in the third quarter of 2025 compared to the second
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quarter of 2025, with activity in oil basins continuing to soften while gas basins remained relatively stable. However, despite
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the rig count decline, United States total liquids production, as reported by the Energy Information Administration, reached an
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all-time high in the third quarter of 2025. Internationally, rig count increased modestly in the third quarter of 2025, as declines
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in Saudi Arabia were offset by rig additions elsewhere in the Middle East.
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Since the end of the third quarter of 2025, the macro environment for oil and natural gas has remained volatile. Trade
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tensions and tariffs continue to negatively impact the demand outlook, while the pace of supply growth has outstripped
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supply chain organization continuously monitors market trends and works to mitigate those and other cost increases through
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economies of scale in global procurement, technology modifications, and efficient sourcing practices. Globally, we continue to
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be impacted by extended supply chain lead times for the supply of select raw materials. Also, while we have been impacted by
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impairments and other charges of$116 million. The tariff impact on operating income for thethird quarter of 2025 was
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approximately $31 million and resulted primarily from tariffs imposed by the United States.
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quarter of 2024. These results were largely driven by lower pressure pumping services in North America and reduced
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activity in Latin America and higher completion tool sales in Norway. Operating income was further adversely impacted by
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lower activity and reduced pricing for stimulation activity in US Land.
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quarter of 2024. Decreased drilling-related services in Latin America and lower activity across multiple product service lines in
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Saudi Arabia were offset by increased drilling-related services in Europe. Operating income was further adversely impacted by
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activity mix and mobilization costs in drilling-related services.
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Our North America revenuewas relatively flat in thethird quarter of 2025 as compared to thethird quarter of 2024.
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Lower pressure pumping services, decreased fluid services, and reduced artificial lift activity in US Land were offset by higher
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Internationally, revenue decreased 2% in thethird quarter of 2025 as compared to thethird quarter of 2024, largely
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driven bylower activity across multiple product service lines in Mexico and Saudi Arabia. Partially offsetting these decreases
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were higher activity across multiple product service lines in Norway, improved fluid services in the Middle East and Argentina,
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In 2021, we announced our target to achieve a 40% reduction in our Scope 1 and 2 emissions by 2035 from the 2018
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baseline. We continue to execute our priorities to drive down our emissions intensity. At the same time, we support our
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customers in their emissions reduction efforts by continuously developing and deploying goods and services that are accretive
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to their goals as well as ours. As the energy mix transition unfolds, we seek to apply our expertise and resources in growth
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sectors adjacent to our traditional oilfield services space, including carbon capture, utilization, and storage, and geothermal.
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Finally, we will continue to focus on accelerating the success of clean tech start-ups via Halliburton Labs, which also allows us
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to participate in the energy mix transition at relatively low risk by investing our expertise, resources, and team without a
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conjunction with thecondensed consolidated financial statements included in “Item 1. Financial Statements” contained herein.
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conjunction with the condensed consolidated financial statements included in Item 1. Financial Statements contained herein.
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third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business.
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third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business. We expect
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significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With approximately 47,000
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significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With over 46,000 employees, we
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employees, we operate inmore than 70 countries around the world, and our corporate headquarters is in Houston, Texas.
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operate inmore than 70 countries around the world, and our corporate headquarters is in Houston, Texas.
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Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We work to
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Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We strive to
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International: Increase international growth in our directional drilling, unconventionals, well intervention, and
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International: Consistently increase international growth in our directional drilling, unconventionals, well
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-North America: Maximize value by, among other things, increasing the utilization by our customers of our Zeus
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-North America: Maximize value by, among other things, utilizing our Zeus IQ electric fracturing platform, our
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electric fracturing platform and our iCruise rotary steerable systems, and incorporating automation technologies in
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iCruise rotary steerable systems and LOGIX automation.
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-Capital efficiency: Maintain our capital expenditures at approximately 6% of revenue while utilizing technology and
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-Capital efficiency: Maintain our capital expenditures at about$1.1 billion, while leveraging technology and targeted
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targeted process improvements to enhance the effectiveness and efficiency of our utilization of capital.
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process improvements to enhance utilization of existing capital.
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and support Halliburton Labs early-stage company participants.
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and our emissions intensity, grow our low carbon energy business, and support Halliburton Labs early-stage
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We continue to monitor and assess the impact of tariffs on goods being imported into the United States. Our global
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being imposed under other statutes. We continue to monitor and evaluate the effects on goods imported into the United States.
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inflationary cost increases, we generally try to pass much of those increases on to our customers and we believe we have
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As a standard practice, we generally seek to pass a portion of these cost increases on to our customers and believe we have
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effective solutions to minimize their operational impact.
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effective solutions in place to minimize their operational impact.
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The following graph illustrates our revenue and operating margins for each operating segment for thethird quarter of
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The following graph illustrates our revenue and operating margins for each operating segment for thefirst quarter of
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During thethird quarter of 2025, we generated total company revenue of$5.6 billion, a 2% decrease as compared to
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During thefirst quarter of 2026, we generated total company revenue of$5.4 billion, relatively flat as compared to the
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million, in thethird quarter of 2025, as compared to operating income of$871 million in thethird quarter of 2024, including
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first quarter of 2025. We reported operating income of $679 million, in thefirst quarter of 2026, as compared to operating
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thethird quarter of 2024. We reported operating income of $356 million, including impairments and other charges of$392
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income of$431 million in thefirst quarter of 2025, including impairments and other charges of$356 million.
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Our Completion and Production segment revenue decreased 2% in thethird quarter of 2025 as compared to thethird
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Our Completion and Production segment revenue decreased 3% in thefirst quarter of 2026, as compared to thefirst
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completion tool sales in Latin America and the Middle East. Partially offsetting these decreases were increased stimulation
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sales and decreased pressure pumping services in the Middle East. Partially offsetting these decreases were higher completion
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decreased pressure pumping services in the Western Hemisphere and lower completion tool sales in the Western Hemisphere
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tool sales in the Western Hemisphere, and improved pressure pumping services in Africa.
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Our Drilling and Evaluation segment revenue was relatively flat in thethird quarter of 2025 as compared to thethird
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Our Drilling and Evaluation segment revenue increased 4% in thefirst quarter of 2026 as compared to thefirst quarter
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decreased pressure pumping services in Angola.
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pressure pumping services in Angola. Offsetting these increases were lower activity across multiple product service lines in the
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As of September 30, 2025, we had$2.0 billion of cash and equivalents, compared to$2.6 billion of cash and
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As of March 31, 2026, we had$2.0 billion of cash and equivalents, compared to$2.2 billion of cash and equivalents at
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Significant sources and uses of cash during the first nine months of 2025
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Significant sources and uses of cash during the first three months of 2026
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•Cash flows from operating activities were$1.8 billion. Working capital, which consists of receivables, inventories,
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•Cash flows from operating activities were$273 million. Working capital, which consists of receivables,
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and accounts payable, hada negative impact of$111 million.
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inventories, and accounts payable, collectively hada negative impact of$252 million.
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•We repurchased 32.9 million shares of our common stock for$757 million, which includes excise tax payment due
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•We repurchased 2.8 million shares of our common stock for$100 million.
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•We paid$436 million of dividends to our shareholders.
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•We paid$142 million of dividends to our shareholders.
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capital expenditures based on market conditions. We currently expect capital spending for 2025 tobe approximately 6% of
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capital expenditures based on market conditions. We currently expect capital spending for 2026 to be approximately $1.1
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the market conditions we expect to encounter. Despite this reduction, we believe this level of spending will enable continued
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billion. We believe this level of spending will enable continued investment in our core strategic technologies and businesses,
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investment in our core strategic technologies and businesses, including the international expansion ofour artificial lift, well
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including the international expansion of our artificial lift, well intervention, unconventionals, and drilling technologies. We will
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shareholders. Our quarterly dividend rate is$0.17 per common share, or approximately$144 million. In 2023, our Board
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shareholders. Our quarterly dividend rate is$0.17 per common share, or approximately$142 million. In 2023, our Board
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program to repurchase our common stock from time to time. We repurchased 11.3 million shares of common stock during the
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program to repurchase our common stock from time to time. We repurchased 2.8 million shares of common stock during the
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third quarter of 2025 under this program. Approximately$2.3 billion remained authorized for repurchases as of September 30,
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first quarter of 2026 under this program. Approximately$1.9 billion remained authorized for repurchases as of March 31, 2026
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2025 and may be used for open market and other share purchases.
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and may be used for open market and other share purchases.
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thenine months ended September 30, 2025, we incurred$112 million in expense on our SAP S4 migration. Due to the
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thethree months ended March 31, 2026, we incurred $42 million in expense on our SAP S4 migration and expect the estimated
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forward. We believe the new system will provide important efficiency benefits, cost savings, enhanced visibility to our
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cost to be approximately $45 million per quarter going forward. We believe the new system will provide important efficiency
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operations, and advanced analytics that will benefit us and our customers.
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benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.
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billion of available committed bank credit under a new revolving credit facility executed on August 18, 2025, with an
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billion of available committed bank credit under our revolving credit facility, with an expiration date of August 16, 2030. We
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collectability of receivables from this customer.
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while the opposite is usually true for higher oil and natural gas prices. Our financial performance is therefore significantly
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10-Q, including those in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations –
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not,” “believe,” “do not believe,” “plan,” “estimate,” “intend,” “expect,” “do not expect,” “anticipate,” “do not anticipate,”
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known or unknown risks and uncertainties. In addition, other factors may affect the accuracy of our forward-looking
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Future sources and uses of cash
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which are summarized in the tables below.
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During thethree months ended September 30, 2024, we took a pre-tax charge of$116 million primarily related to severance
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SAP S4 Upgrade Expense. As previously mentioned, during 2023 we began our migration to SAP S4, which we expect
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Charges for further discussion of these charges.
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Pillar Two. As previously mentioned, The Organization for Economic Co-operation and Development enacted model
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rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or
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are in the process of enacting, legislation considering these model rules. These rules did not have a material impact on our taxes
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information involves risks and uncertainties and reflects our best judgment based on current information. Our results of
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guaranteed. Actual events and the results of our operations may vary materially.